Stock Trading Strategies - Follow and Earn

Booking Losses at the Right Time: A Less-known                  Wealth Management Strategy

Do you book profit or book loss?

You have bought the shares of ABC Ltd at a rate of Rs.100 per share. The current market price is Rs.150 per share. Also you have bought the shares of XYZ Ltd at a rate of Rs.200 and the current market price is Rs.125.

Do you book profits by selling ABC or book losses by selling XYZ.

Warren Buffett said, “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

https://www.holisticinvestment.in/wealth-management-strategy

Regards

Ramalingam K, MBA, CFP,

Director and Chief Financial Planner,

Holistic Investment Planners

“Best Performing Financial Advisor Award” Winners from CNBC TV18

www.holisticinvestment.in

(Follow us on):-

https://www.facebook.com/holisticinvestmentplanners

It's good to see that you are thinking of investing.

There are various methods to invest in the stock market. In my opinion, direct entry to stock market without proper knowledge is risky.

The first thing you should realize is that YOU have the largest stake in your financial future. So.... listen to advice, but always, always do your own independent thinking and research!

Prior to direct stock investment, you should know your time frame and investment focus. Well amount of time required to deep research and study well about the stocks using the well defined fundamental analysis methods by legend investors.

Buy low. Sell high

- When you hop on the band wagon, it's already too late to sell/buy

- diversify

- think of it as a long-term investment

- buy blue chip stocks

- look at the price per earnings ratio of the company as a measure of a good buying price.

- don't invest your life's savings.

- invest only what you can afford to lose.

- invest only what you can afford to forget about for a long time. that way you're not tempted to sell at a loss when you're in a panic.

- You would be better off investing in a mutual fund that is managed by experts if you're not well versed in how the stock market works.

The basics of the stock market are covered in easy to understand language.

You might find these books helpful to get started....

1) Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! by Phil Town (Paperback - Aug 28, 2007)

Towns does a good job for the novice investor here. A very interesting read!

2) The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market by Pat Dorsey and Joe Mansueto (Paperback - Dec 29, 2004)

Pat Dorsey is Morningstar's Director of Stock Analysis. This is a very well written book - a must read!

3) Learn to Earn: A Beginner's Guide to the Basics of Investing and Business by Peter Lynch and John Rothchild (Hardcover - April 3, 1997)

Peter Lynch ran Fidelity's Magellan Fund and is regarded as one of the most successful Mutual Fund Managers of all times.

4) The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Paperback)

By Benjamin Graham (Author), Jason Zweig (Author), Warren E. Buffett.

Good luck on your investment journey!
 

Stock Tips | Currency Tips